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EUR12 mln for largest grain trading company in Serbia & Montenegro
EBRD, Fortis Bank loan to Yu-Point expected to benefit local producers
Yu-Point d.o.o., Serbia and Montenegro’s largest grain trading company, is about to expand further with the help of a €12 million loan from the EBRD and Fortis Bank, a leading Dutch-Belgium financial institution that specialises in, amongst other things, trade finance.
The loan, which is divided on equal terms between both institutions, will enable Yu-Point to continue its expansion in Serbia and Montenegro. It will also enable the company to export more products throughout southeast Europe, increasing competition, while further strengthening its market position within the grain sector in Serbia and Montenegro. Yu-Point is also a prominent supporter of local farmers and wholesalers, marketing their harvest extensively within Serbia and Montenegro and beyond.
Hans Christian Jacobsen, Director for Agribusiness at the EBRD, said this project is important for both the company and for local farmers. As the company grows, so will its demand for products from local producers. It is projects like this that benefit all parties involved, and also helps strengthen the local economy, Mr Jacobsen added. The project is also expected to act as an important signal that privately owned companies in Serbia and Montenegro with solid management and good corporate governance can attract long-term financing.
Established in 1990, Yu-Point is a subsidiary of East Point Holdings Group, a major international trading group based in Cyprus and controlled by Serbian nationals. While already securing a significant market share in Serbia and Montenegro, the group is expecting to continue to expand, capitalising on the substantial room that still remains for growth in the grain trading and processing segment. The company recently acquired more than 120,000 tonnes capacity of silos and four flour mills and bakeries across Serbia, supporting its expansion plans.
Zoran Drakulic, President of EPH Group, said: “With the EBRD’s and Fortis’ involvement, Yu-Point has acquired partners interested in the development of our business in the most efficient way. At the same time, we are supporting our local farmers by using their products to produce the highest-quality flour and bakery products, which is good for them, us, and the economy.”
Dragica Pilipovic, Director of the EBRD’s office in Serbia and Montenegro, said that companies like Yu-Point are strong partners for the EBRD because they are strong promoters of transition. Ms Pilipovic added that the Bank will continue to work with such companies because they are important for countries, economies and people.
The EBRD has signed 199 projects worth around €3 billion in the agribusiness sector alone throughout Central and Eastern Europe and the Commonwealth of Independent States.
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